Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

The Company leases certain facilities and equipment under non-cancelable operating leases which expire at various dates through 2031. Office and equipment leases are typically for terms of three to five years and generally provide renewal options for terms up to an additional five years. Some of the Company’s leases include options to terminate within one year.

During the year ended December 31, 2023, 2022, and 2021, the Company recorded impairments of $2.2 million, $1.0 million, and $12.7 million, respectively on its operating lease right of use assets within Digital Media and Cybersecurity and Martech primarily related to exiting certain lease space as the Company regularly evaluates its office space requirements in light of more of its workforce working from home as part of a “remote” or “partial remote” work model. The impairments were determined by comparing the fair value of the impacted right-of-use asset to the carrying value of the asset as of the impairment measurement date, as required under ASC 360, Property, Plant, and Equipment. The fair value of the right-of-use asset was based on the estimated sublease income for the affected facilities taking into consideration the time it will take to obtain a sublease tenant, the applicable discount rate and the sublease rate which represent Level 3 unobservable inputs. The impairments are presented in ‘General, administrative, and other related costs’ on the Consolidated Statements of Operations.

In certain agreements in which the Company leases office space where the Company is the tenant, it subleases the site to various other companies through a sublease agreement.

Operating right-of-use assets are included in ‘Other assets’ on the Consolidated Balance Sheets. Operating lease liabilities are included in ‘Other current liabilities’ and ‘Other noncurrent liabilities’, respectively, on the Consolidated Balance Sheets as follows (in thousands):

	December 31,
	2023		2022
Operating lease right-of-use assets	$	24,564	$	40,640
Operating lease liabilities, current	$	15,801	$	22,153
Operating lease liabilities, noncurrent	16,626		33,996
Total operating lease liabilities	$	32,427	$	56,149

The components of lease expense are as follows (in thousands):

	December 31,
	2023		2022
Operating lease cost	$	15,065	$	17,656
Short-term lease cost (1)	1,070		1,127
Total lease cost	$	16,135	$	18,783

(1)The Company made an election to account for a short-term lease payments on a straight-line basis over the term of the lease.

Other supplemental operating lease information consists of the following:

	December 31,
	2023		2022
Operating leases:
Weighted average remaining lease term	3.0 years		3.3 years
Weighted average discount rate	3.27	%	3.08	%

As of December 31, 2023, maturities of operating lease liabilities were as follows (in thousands):

2024	$	16,950
2025	7,395
2026	4,598
2027	2,483
2028	837
Thereafter	1,839
Total lease payments	$	34,102
Less: Imputed interest	1,675
Present value of operating lease liabilities	$	32,427

Sublease

Total sublease income for the years ended December 31, 2023, 2022, and 2021 was $6.0 million, $6.8 million, and $2.0 million, respectively. Total estimated aggregate sublease income to be received in the future is $7.2 million.